Dive Brief:
- Seeking value this season, consumers plan to dedicate about 40% of their holiday shopping budgets to secondhand gifts, according to a survey released Thursday from secondhand e-commerce company ThredUp and conducted by GlobalData.
- The survey of 2,000 consumers conducted in September also found that over half are more likely to focus on buying more items for less money this year.
- Nearly two-thirds said they were open to giving secondhand presents, though that increased to 80% with millennial respondents. Meanwhile, nearly 47% of those surveyed plan to or are considering selling their own items to contribute to holiday budgets.
Dive Insight:
The ThredUp survey builds on other data suggesting consumers are indeed seeking more value this holiday season.
“While the macroeconomic picture remains unclear, consumers aren't stopping their holiday traditions — they're just getting more strategic on how they participate,” ThredUp CEO and co-founder James Reinhart said in a statement. “They're seeking the most value, and that path is increasingly through resale.”
Seventy-one percent of consumers are planning to be more selective with their holiday buys this year, per an ICSC survey of over 1,000 consumers from this month. The survey also found that nearly two-thirds of respondents will avoid buying items from retailers that significantly raise their prices.
An October survey report from JLL found that while higher-earning shoppers plan to spend 26% more on holiday purchases, those earning under $50,000 plan to spend 24% less compared to last year. Average holiday budgets are expected to decline 10.2% to $1,133. However, gift budgets specifically could stay mostly unchanged from 2024.
Amid a complicated macroeconomic backdrop this year, at least some shoppers seem keen on finding deals wherever they can, sometimes with resale goods.
ThredUp’s Q2 revenue grew 16% year over year to $77.7 million, and its active buyers jumped 17% to 1.47 million for the quarter. Its net loss improved from the year-ago period, and gross profit grew 17% to $61.7 million.
